Why the Singapore Summit Between US and North Korea Matters : Introduction
For more than 70 years, tensions between South and North Korea have been mounting. The two countries, which were once one country have been at war. While the Southern side of the peninsula has prospered, the Northern part has become one of the poorest country in Asia. The southern side has a population of 51 million people and a population of more than $1.4 trillion. The northern side has a population of about 30 million people and a GD of just $31 billion.
The Northern side has been isolated for years. Its leaders adopted communism policies that have led the country to become the most isolated in the world. Regardless of this, the country has been developing nuclear weapons. These weapons are intended to protect the regime from invasion. The leaders have seen other nuclear powers surrender their weapons only for their regimes to be toppled. Muammar Gadaffi and Sadam Hussein are the best examples in this.
The meeting tomorrow comes after a tensed year. Last year, President Trump and Kim Jong Un turned to name calling. Trump threatened North Korea that his provactions would be met with fire and fury. He even coined a name for him, Liddle Kim Jong Un. On his part, Kim named gave Donald the nickname of a Dotard. At the end of the year, the two talked about their nuclear buttons.
As such, the meeting between the two countries is very important. This is because if it happens, it will usher a new era in global cooperation and peace. It will also usher in a new era in the global order. An era where North Korea is not viewed as a threat. It will also release sanctions that have been placed on North Korea. This will lead to a new era in opportunity for the world’s most sanctioned country.
However, there are risks in this meeting. The biggest risk is if the summit fails and the world returns to an era of nuclear proliferation. This will mean that the world, especially in Asia will be less safe than it is today.
Traders should follow the meeting closely. This is because the outcome will move the market in one way or another. A successful meeting will mean trouble for the Japanese yen and vice versa. An unsuccessful meeting on the other hand will mean ongoing geopolitical challenge. In fact, there is a possibility that China will ease its sanctions on the country if the meeting fails to work. If this happens, it will lead to more confrontations with China.
Therefore, the meeting is very important to traders, investors, and policymakers. This is because a deal will mean more global peace and prosperity not only in the peninsula but around the world. It will also mean more impacts in commodities. With the sanctions in place, North Korea is not able to import enough crude oil. Therefore, if there is a deal, there is a likelihood that the price of crude oil will rise as traders expect more demand. The same is true for other commodities.
Why the Singapore Summit Between US and North Korea Matters : UsefulTips
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